California ponders break for gold bugs

A court official holds two 1908 $20 gold coins on Tuesday, Aug. 6, 2013, during an auction at the Carson City, Nev., courthouse. The coins were among the more than 2,000 that were to be auctioned off from the estate of Walter Samaszko Jr., a recluse who left millions of dollars of valuable coins and precious metals in his Carson City garage after his death last summer. One batch of mostly gold bullion sold for $3.5 million at an auction in February. (AP Photo/Scott Sonner)
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A court official holds two 1908 $20 gold coins on Tuesday, Aug. 6, 2013, during an auction at the Carson City, Nev., courthouse. The coins were among the more than 2,000 that were to be auctioned off from the estate of Walter Samaszko Jr., a recluse who left millions of dollars of valuable coins and precious metals in his Carson City garage after his death last summer. One batch of mostly gold bullion sold for $3.5 million at an auction in February. (AP Photo/Scott Sonner)
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Did you know that buying gold coins and bullion may be exempt from state sales and use taxes? Me neither.

The California State Board of Equalization said in a press release Monday that it will consider raising the dollar figure that it considers a "bulk sale" for tax purposes.

State law exempts from taxes the sales of gold and silver bullion and collectors coins that cost $1,500 or more. The law also says that the BOE can raise the threshold to adjust for inflation in increments of $500.

Raising the threshold would increase the number of taxable sales in the state, assuming consumers didn't simply respond by buying more gold or silver at a time to avoid the tax.

Sales taxes can run to 10 percent in some cities, so avoiding them is a big deal for buyers of precious metals.

The BOE's staff members have recommended leaving the threshold at $1,500 for 2014, arguing that inflation, as measured by the consumer price index, hasn't gone up enough to justify a bump all the way to $2,000.

Agency board members are scheduled to decide the matter Tuesday.

UPDATE: As expected, the Board decided Tuesday to leave the $1,500 threshold unchanged.